Indiana Excise Tax

jeffo wrote:
We purchased our motorhome new almost 3 years ago. It has always bothered me that the DMV charges excise tax on the MSRP instead of what the purchase price was. Our MSRP was 132,000 and our purchase price was 90,000. I don't think anyone pays full MSRP and I think its a sales and marketing tool used by the rv industry to make us fill good about getting 20 to 35 percent off. I guess we just pay it and go on.
Thanks for letting me rant.

Jeff

Has anyone ever questioned the legality of such a thing?
Maybe it's because the wording was changed, it's OK and because it's not actually a sales tax.
What happens when you buy used, you pay on someone's book value or what?
No wonder my state's population continues to increase the way it does.
Don't believe in paying tax on used cars either. I mean do you pay tax on the used furniture, that you bought from your neighbor? Oh well, it's better than fighting with the state, I guess and have paid my 6 cents on a dollar car sale, more than once. Just requires the bill of sale, is all.

1968mooney wrote:
Yes, in 2012 I nearly purchased a $250,000 MH. Walked away and saved $17,500 in sales tax. In 2013 I nearly purchased a $300,000 MH. Walked away again and saved $21,000. This year I nearly purchased a $400,000 MH. Again I walked away and saved $28,000. In 4 yrs I have saved $66,500 in tax. BOY I FEEL GOOD.

If you do that a few more times, you will save enough to pay cash for the motorhome you don't buy. Then you'll be saving about 500k. Nice. :)

I guess my point is that I fill like the RV industry is purposely inflating the retail cost in order give us a warm and fuzzy feeling when we can get 30 percent off sticker and it cost us at the BMV. I think 1968mooney has the right idea, I just don't have that much will power LOL.

Yes, in 2012 I nearly purchased a $250,000 MH. Walked away and saved $17,500 in sales tax. In 2013 I nearly purchased a $300,000 MH. Walked away again and saved $21,000. This year I nearly purchased a $400,000 MH. Again I walked away and saved $28,000. In 4 yrs I have saved $66,500 in tax. BOY I FEEL GOOD.

Move 50 miles NE or 1 mile south, and get a better deal on sales taxes.

PastorCharlie wrote:
There is a lot of room for cheating if taxes are charged on the actual sale price.

yep. By using MSRP they're making up for years of being cheated.

PastorCharlie wrote:
Sale taxes are based on the actual value of an item.....sale prices do not reflect the actual value of an item....that is a sale price.

Tax departments go by NADA or KBB. There is a lot of room for cheating if taxes are charged on the actual sale price.

California (the most taxed state in the nation) only charges tax on actual sales price. And then future years registration is also factored off that sales price.

Sale taxes are based on the actual value of an item.....sale prices do not reflect the actual value of an item....that is a sale price.

Tax departments go by NADA or KBB. There is a lot of room for cheating if taxes are charged on the actual sale price.

You could always move to one of the more enlightened states. NY only charges sales tax on the actual selling price. Or to one of the few states with no sales tax. ;)

Colorado does the same thing based off MSRP they also charge a ownership tax every year you own it and a bridge fee and road fee.